Deemed disposition (also called a “deemed sale”)
The hypothetical transfer of property by an individual or trust, as a result of certain events provided for by law, whereby the individual or trust is considered to have actually disposed of the property.
A deemed disposition can occur if, for example:
- a debt is determined to be a bad debt;
- there is a change in the use of property;
- property is expropriated, damaged, stolen, destroyed, etc.;
- a person leaves Canada;
- a person who owns property dies.